Home Gaming Sony Executive Jim Ryan Explains his Reasons for Rejecting the Xbox Merger and Shares Other Significant Insights

Sony Executive Jim Ryan Explains his Reasons for Rejecting the Xbox Merger and Shares Other Significant Insights

PlayStation executive Jim Ryan recently made an appearance in a prerecorded video deposition as part of the ongoing Xbox FTC trial. In the 70-minute segment, Ryan discussed several important points regarding Microsoft’s proposed acquisition of Activision Blizzard. Here are the key takeaways from Ryan’s appearance:

1. Ryan acknowledged that the exclusivity of games like Redfall and Starfield is not anticompetitive, stating that while he personally doesn’t like it, he does not view it as anticompetitive.

2. He referred to Xbox Game Pass as “value destructive,” stating that publishers he spoke to are not fans of the subscription-based model, as they believe it diminishes the value of their games.

3. Ryan confirmed that Sony never asked Activision to add new versions of Call of Duty to its PlayStation Plus subscription service, as they were aware that Activision’s CEO Bobby Kotick did not see that as a direction he wanted to take.

4. An email exchange between Ryan and Xbox boss Phil Spencer in August 2022 raised concerns within Sony, though the contents of the email were not revealed in court.

5. Ryan expressed disappointment over missing out on Bethesda games like Starfield due to the ZeniMax acquisition by Microsoft, as he had expected them to be available on PlayStation based on the companies’ previous multiplatform releases.

6. Ryan initially believed that Microsoft’s acquisition of Activision Blizzard was not solely for Xbox exclusivity but rather for King’s suite of mobile titles.

7. Ryan claimed that Sony would withhold developer kits of future consoles from Activision if the acquisition goes through, citing the risk of a company owned by a direct competitor accessing sensitive information.

8. He stated that Sony’s acquisition of Bungie will provide them with more value than a $69 billion acquisition of Activision Blizzard, attributing this to Bungie’s expertise in the live service space.

9. Ryan made no definitive statements regarding the future impact of cloud gaming, stating that it will become a meaningful component between 2025 and 2035 but could not accurately predict when it will play a larger role.

10. He agreed with the FTC’s assertion that Nintendo is not in direct competition with Sony in the console market due to the different audience preferences and capabilities of the Nintendo Switch.

11. Ryan acknowledged that the Xbox Series X and S have performed well since launch, stating that demand for Microsoft’s consoles is strong, particularly in the United States.

Overall, Ryan’s deposition sheds light on Sony’s perspective regarding Microsoft’s proposed acquisition of Activision Blizzard and highlights their concerns about competition and the future of gaming.

 

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